09/10/2018 - 11:44

Kin plans $10m raising

09/10/2018 - 11:44

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Gold-focused Kin Mining has announced plans to raise up to $10.4 million via an entitlement offer, while also revealing it has received interest for potential acquisition deals.

Construction at Leonora was suspended in May.

Gold-focused Kin Mining has announced plans to raise up to $10.4 million via an entitlement offer, while also revealing it has received interest for potential acquisition deals.

Kin said it will raise the capital at 8 cents per share through a two-for-five non-renounceable rights issue.

The offer price represents an 11 per cent discount to yesterday’s closing price.

The company said its three major shareholders intended to fully participate in the offer.

Kin said the proceeds from the raising would be spent at the Leonora gold project (LGP), where it suspended construction in May after a review confirmed increases in the pre-production capital costs.

The company will also use some of the funds to repay the outstanding debt facility with Sprott Private Resource Lending of $US3 million ($4.2 million).

“Since the suspension of project development activities earlier this year, Kin has set about restoring the credibility of the LGP in a methodical and progressive fashion,” managing director Andrew Munkton said.

“This raising, and the planned use of the expected funds, represents the next step in this process.”

Meanwhile, despite having not received a formal proposal, Kin said it has fielded interest from a number of parties in relation to potential asset and corporate transactions.

“Kin continues to progress these interactions on a case-by-case basis and will consider transactional proposals with the potential to yield full realisation of LGP underlying value,” Kin said in a statement to the ASX.

The company said it was also aiming to complete an updated feasibility study late next year.

Shares in Kin were off 14.44 per cent at 7.7 cents each at 2.10pm AEDT.

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